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Assume that the CAPM is the correct model and that stock Y plots on the Security Market Line (SML). Y has an expected return of

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Assume that the CAPM is the correct model and that stock Y plots on the Security Market Line (SML). Y has an expected return of 15% and a beta of 1.2. The risk-free rate is 4%. What is the slope of the Security Market Line? Enter your answer to 4 decimal places eg if your answer is 2.12% enter as 0.0212 If your answer is 2% enter as 0.0200

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